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Apple forcing developers to use in-app payment system on iOS, App Store: Antitrust watchdog

The Competition Commission of India is set to take a final decision on the probe soon

The logo of Apple is illuminated at a store in the city center in Munich, Germany, on Dec. 16, 2020 | AP

The Competition Commission of India, the country's antitrust regulator, has revealed that Apple has been engaged in "abusive conduct and practises" by exploiting its "significant influence" in the market and forcing developers to use its proprietary in-app payment system on the iOS platform and App Store. The development was revealed by Reuters, which cited a confidential 142-page report.

In the June 24 report, the CCI's investigation team said Apple was not allowing third-party payment processors to conduct in-app purchases and in most cases the apps are not allowed to include any external links that direct customers to other purchasing mechanisms, which is in violation of the country's competition laws.

The Cupertino giant, which has been under the competition regulator's radar since 2021, has denied violating any law and said it is an “insignificant” player in India with just 0-5 per cent share when compared to Google's Android, which commands 90-100 per cent of the market. It added that the in-app payment system keeps the App Store safe.

The CCI report stated, "App developers are forced to partner with App Store and have to adhere to the company's “unfair terms”, including the mandatory use of Apple's billing and payment system. “From the perspective of app developers, Apple iOS ecosystem is indispensable," it added.

The report by the panel's investigation unit will be reviewed by senior CCI officials, following which Apple can be expected to argue against the findings in the report. Later, the CCI will take a final decision on whether the iPhone maker should change their practices. If found flouting rules, Apple could be levied a fine as well.

This is not the first time that the iPhone maker has come under antitrust lens globally. Last month, antitrust counterparts in the European Union accused the US company of violating tech rules. Apple is also under scanner over levying fees from app developers.

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